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Unformatted text preview: years. The scholarships are to have a value of $24,000 (per each scholarship) per year for the first year and this should increase at a rate of $3,000 per year over the following 19 years. UW requires that Example 3 • A new water line is required to meet the needs of the growing city of Idiom for the next 10 years. Two alternative plans will satisfy the water requirement: an 8 inch pipe installed now, with another 8 inch pipe added in 5 years; or a 12 inch pipe installed now to serve by itself for all 10 years. Assuming a 10year planning period and an interest rate of 10%, recommend the better alternative. Use the annual worth method....
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This note was uploaded on 04/01/2012 for the course MSCI 261 taught by Professor Bonkoo during the Winter '09 term at Waterloo.
 Winter '09
 BONKOO

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